Leeds households who do not pay council tax by direct debit must apply for £150 energy rebate

Responding to the huge rises in energy bills, Chancellor Rishi Sunak announced last month that a one-off payment to help each household cope with the cost of living.

According to the plans, £150 will be automatically paid into the bank account of each council taxpayer in a band A-D property who pays their council tax by direct debit.

But it has been revealed 120,000 households in Leeds – more than a third overall – do not pay their council tax by direct debit, and would therefore not be getting the automatic payment as the council does not hold their bank details.

As this number includes those who do not hold a bank account, it includes some of the city’s most economically disadvantaged people.

Leeds City Council said it “aims” to have an online form available by early April to help people claim the rebate, but added it was “not yet determined” how it would help those without access to this service.

Setting up the application process is likely to cost the authority money, as it has been reported that Hull City Council – itself with 60,000 non-direct debit council taxpayers – estimated extra mailshots and communication would likely cost around £40,000 of public money.

When asked about similar costs it would face, Leeds City Council said it was “not yet known” how much such an operation would cost, but that it “expect(s) that all costs will be covered via the new burdens funding provided by the Government.”

A statement released this week by the government Department for Levelling Up, Housing and Communities urged council taxpayers to switch to direct debit in order to avoid difficulties.

It read: “People who pay council tax by direct debit, which is a safe, simple and quick way to pay will see the cash go directly into their bank accounts from April. Those who do not pay by direct debit will be contacted by their council and invited to make a claim.”

Guidance was given to local authorities by the Government on Wednesday, stating that “all reasonable efforts to contact the household as early as possible” should be made by councils to make non-direct debit taxpayers aware of the scheme and invite them to claim. It added that all payments should be made by September 30.

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